Despite the clear improvement in the incoming economic data over the past month, which has triggered a reversal of the earlier tightening in financial conditions, the chance of the Fed raising interest rates at next week’s FOMC meeting, which concludes on Wednesday 16th March, is close to zero. Nevertheless, with the market turmoil subsiding and domestic price pressures mounting, we expect the Fed to resume raising rates in June (or possibly even April), with the fed funds target range climbing to between 1.00% and 1.25% by year-end.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services